York, Pa. Bon-Ton Stores Inc. said Thursday that it will eliminate about 1,150 jobs, get rid of 2008 senior executive bonuses and cut 2009 merit-based raises as it tries to slash costs to contend with the ongoing recession.
The department store operator anticipates the moves will result in annual savings of $70 million.
Bon-Ton said its actions will also include suspending company contributions to the 401(k) program, adjusting inventory levels and lowering capital spending to $40 million.
The moves, which will occur in fiscal 2009, will result in one-time costs of approximately $3 million.
The company also said it is looking at the value of its intangible, long-lived and tax assets and anticipates a non-cash charge related to lowering the assets' reported value.
Bon-Ton said the amount of the charge would be determined later in the year.